Housing Plus is taking Orange City Council to the Land and Environment Court to fight council's refusal to approve the development of a 10-home complex in Lantana Place.
Housing Plus project manager Justin Cantelo confirmed this week that Housing Plus had lodged a development appeal with the Land and Environment Court.
However, Housing Plus has refused to explain why it was taking the action, what grounds it would use to fight its case or how the appeal would be funded.
Typical court costs for a case of this type exceed $200,000.
It's never cheap and it's time consuming.Cr Reg Kidd, Orange mayor
A council spokeswoman said it had been served with a notice the matter was proceeding to the Land and Environment Court.
"Council is considering the matter, will obtain legal advice and then consider its options," she said.
Orange mayor Reg Kidd said the legal action would cost the public.
"This is an expensive process for both parties," he said.
"It is unfortunate there is not a better mediation process.
"You are just in the hands of the court. In my mind there is always a loser."
"It's never cheap and it's time consuming," he said.
Council initially approved the social and affordable housing project last month but overturned the decision two weeks later after eight residents pleaded with councillors to reject it.
The residents said they feared the introduction of social housing residents in their area would lead to rising crime rates, increased anti-social behaviour, a loss of privacy, a fall in housing prices and over-development of the planned site.
Council voted 8-3 to rescind the original decision and to refuse planning approval on grounds of social, economic and traffic impacts and public interest.
Councillors Joanne McRae, Tony Mileto and Stephen Nugent voted in favour of the development.
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